The FICO Credit Score
FICO scores measure the likelihood that a person will default, or fail to meet the payment terms, on a loan or credit account. Scores range from 300 to 850, with 680 generally considered as the acceptable limit. The median score is 723, and those with scores of 740 and above usually get the best rates from lenders. Only 13% of Americans have FICO scores of 800 or more.
There are actually three different FICO scores designed for different types of credit: consumer credit (i.e., credit cards), mortgages, and automobile loans. A person’s scores can differ by about 50 points from one credit type to another. Individuals can buy their consumer credit scores, whereas mortgage lenders are legally allowed to access applicants’ mortgage FICO scores without the subject’s consent.
FICO scores are determined from credit records provided by the three credit bureaus. Not all creditors furnish information to all three bureaus, so the score varies depending on Fair Isaac’s sources. For consumer credit scores, which are sold to individuals, users can choose which bureau the data will be obtained from.